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abdallaex abdallaex
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A year ago

The diagram below shows a firm's demand for its units of capital-coin-operated coffee machines. The firm places its machines in universities and colleges across Canada.

Short description: A graph plots the flow of investment in the number of coffee machines against interest rate. Long description: The horizontal axis representing the flow of investment in the number of coffee machines ranges from 250 to 750, in increments of 250. The vertical axis represents the interest rate. The graph shows a concave up decreasing curve, I subscript 0. A dashed concave up decreasing curve above the previous curve represents I subscript 1 and a dashed concave up decreasing curve below the previous curve represents I subscript 2. All the curves begin at different points in the top-left and end at different points in the bottom-right.

FIGURE 15-1

Refer to Figure 15-1. One possible explanation for a shift of the firm's investment demand curve from I0 to I1 is



▸ a decrease in the interest rate.

▸ a technological change that increases the cost per cup of coffee.

▸ an increase in the expected MRP of the coffee machines.

▸ demographic changes that lead to a reduction in the growth rate of the student population at universities.

▸ an increase in the interest rate.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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bizmailovabizmailova
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abdallaex Author
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A year ago
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Smart ... Thanks!
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